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Probably a topic worthy of a new thread :). See What's the catalyst to provide the next big jump in family discretionary income?

Why ? Isn't it simply a function wages growth and inflation ? I agree that IRs & exchange rates will change discretionary income. But they have a relatively small influence. Only 10% of total income goes towards housing (rent & P&I), so a change in IRs has a small effect. And exchange rates...

I think that's the point - debt is now relatively higher than at any time in history & growing exponentially. However, serviceability has also been growing at the same rate, so we can continue to afford our expensive(?) houses. Showing debt against GDP shows some scary exponential graphs...